MCPS CFO outlines FY26 cuts, OPEB cushion and multi-year plan for FY27

Miss Yvonne Alfonso Windsor, Montgomery County Public Schools chief financial officer, presented a recap of the FY26 operating budget and early planning for FY27 at the Fiscal Management Committee meeting on June 26.

Alfonso Windsor said the Maryland General Assembly’s actions changed earlier assumptions about state funding and noted a local share increase tied to a state decision that shifts approximately $20 million in teacher-pension costs to local governments. She said MCPS reduced its request to the County Council and ultimately implemented a $9.5 million reduction package to the tentative budget.

"We had decreased funding from the state in terms of special education for non public students... and that is something that has potential up to $4,000,000 impact in our budget this year," the CFO said. She described targeted reductions (for example, a $500,000 cut to Chromebook repair parts and a partial reduction to an equity add-on) and restorations, including eight central-office positions and $600,000 for a special-education assessment and talent-management work.

Alfonso Windsor also explained the district’s OPEB trust (other post-employment benefits), describing roughly $140,000,000 in the fund as a risk-management reserve. She said the county provided one-time funding intended to reduce near-term pressure but that MCPS must plan multi-year investments to fully stabilize employee-benefit funding. "We were planning to invest $40,000,000 of the operating budget into the EVP fund; we're no longer doing that," she said, describing how that one-time county contribution alters planning for FY27.

Board members asked for later presentations that break down expected savings and the multi-year plan. The CFO said staff will prepare detailed analyses and staffing-standard baselines for the superintendent and the board in September.